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Purple cow dairy needs to increase its market share within the dairy product market itself. It needs to create a new marketing campaign to advertise its current products and display its new line of omega 3 dairy products. Purple cow dairy needs to reach out to its current consumer base and new consumers as well and demonstrate why its product line is better then the competition, display its benefits to healthy conscious consumers. Purple cow dairy must be cautious when putting a price on the new product line.
While it will be more expensive then its current product line, they must be careful to price the product as it must be large enough to draw in a good profit, but not too high to scare away price cautious consumers. If the new product line is to be successful, Purple cow dairy must overcome the minds of consumers who often buy grain based foods such as bread in order to get their need of omega 3 fatty acids, consumers only 4% of the time buy dairy based products to get this desired fatty acid.
Because of a low traditional sale of dairy based products with omega 3 acids, purple cow must become a market leader to promote omega 3’s within dairy products to increase the market of dairy products with omega 3’s. Strengths: Omegas 3’s have a huge health benefit in the areas of learning ability, mental development, immune systems and vision. They are also linked to treatment in cardiovascular disease and improvement in cognitive functioning.
This would be beneficial for any product that contains omega 3’s due to a consumer who is more health conscious now a days. Purple cow has a desire to sell a new product line which is healthier for consumers then other products currently on the market. Due to the fact that Purple cow is a smaller based dairy company, its expenses(marketing efforts, manufacturing & transportation costs, wages) will be lower than current competition such as Nestle or Nielson.
This allows for Purple cow to sell a product cheaper than the competition while still maintaining a fair profit. Purple cow is abit of a niche market, in the sense that it tries to sell products with unique traits such as organic milk, as opposed to the competition which is selling traditional based dairy products which can draw in consumers looking for something different. Purple cow has a specialized workforce keen on experimenting with new formulations to create products which meet the needs of the consumer and are heavily focussed on the quality of the product.
There is a small market share of products (only 4% of people buy milk based products due to omega 3 benefits) which contain omega 3’s, allowing for Purple cow to be a market leader if successful in selling its new product line. Weaknesses: There is a small market share of products (only 4% of people buy milk based products due to omega 3 benefits) which contain omega 3’s. Therefore the market is small and not very profitable at this moment and any incoming company could fail at selling the product, including Purple cow dairy.
Health based information on food products is often confusing or contradictory to the consumer, thus making it hard for the consumer to know which product is right for them and what the benefits really are and how much of a difference they will make to their health. Many people are not aware of the health benefits of omega 3 fatty acids and what they can do for them or prevent certain health related occurrences; more education needs to be promoted on omega 3.
Food choices are often based on convenience, cost and whatever tastes good. Consumer may assume that products with omega 3’s may alter the taste of the product or be too expensive to buy. Dairy products have a poor reputation/image as being products which contain omega 3’s, as opposed to bread or fish, most consumers look to those products for omega 3 health benefits. Purple cow dairy has a small, limited marketing campaign which does not promote its products enough or its health benefits to consumers.
Because it is a small company and not as widely known, consumers are often drawn away to other related products by rival bigger companies products which have been in the business longer and have market experience, promote and advertise more and are widely known to consumers are already and trusted. The Environment- External Issues: The domestic market is the industry’s major market for dairy products and will continue to be in the future. Unfortunately, the Canadian market for traditional retail dairy products appears to be maturing.
With the exception of a few bright spots, overall future retail growth in sales based on current performance could be slow. Continued investment in product innovation, packaging, co-branding and new uses for dairy products is essential if companies are to succeed in selling dairy based products including those with omega 3. With outbreaks such as mad cow disease, consumers are hesitant or concerned to buy meat and dairy based products that come from cows.
More awareness needs to be taken to show that Purple cow dairy’s animals are free from disease and its products are of high quality and safe. {text:bookmark-start} Opportunities and Threats {text:bookmark-end} : There are opportunities in offshore export markets for finished dairy products such as cheese, or for intermediate products such as whey protein concentrates. Additionally, there are improving market opportunities in Latin America and Asia, where rising incomes and under-developed dairy industries are generating increasing demand for dairy products.
This could allow Purple cow dairy to market, distribute and sell its product lines in other countries and increase its consumer base. Aggressive new product development, new packaging and evaluating new distribution channels such as vending machines are important in maintaining the retail consumer market and can allow smaller companies such as Purple cow dairy to increase market share in less thought of areas.
Due to a growing demand with consumers there is an increased social awareness of health and a desire for healthier products to consume, Purple cow dairy can take a lead role in promoting the benefits of omega 3 fatty acids and selling omega 3 based dairy products. Major changes have also occurred in the packaging of pasteurized fluid-milk products. Until fairly recently, most fluid dairy products were in returnable glass containers; now most are in plastic, heat-sealed bags or in rigid containers made from paper laminated with plastic film.
Both packaging types have significantly increased the shelf life of liquid dairy products. Purple cow dairy could introduce biodegradable packaging for its dairy products, so if thrown into the garbage, they can biodegrade and not pollute the environment. Purple cow dairy can align itself with physicians and health Canada to promote the benefits of omega 3 products, allowing for promotion of the company and its product and raise awareness of the health benefits to sway consumers to buy its products instead of the competition.
Purple cow dairy, being a small company that it is, could suffer attacks of being taken over by a larger company or some form of hostile takeover to eliminate competition by larger firms. Other, larger dairy based companies could see the benefits of purple cow dairy’s product line and create their own line and market it aggressively to stop any growth of purple cow dairy’s product line and draw attention and market share away and keep the consumers it has or increase consumers who are health conscious.
Consumer Behaviour/Segmentation Analysis: The consumers of this group are mostly adults who are health conscious and seeking a diet that promotes good eating and staying fit. Due to increases in food products and with the slowing economy, consumers are looking for products that are healthy but also affordable and fit their budget. Consumers are increasingly demanding organic based food products including milk, and don’t want companies who use BGH(bovine growth hormone).
According to the annual Canadian health survery of 2004, men and woman aged 17-30, consumed the most milk, with 54% of men and 35% of woman. Children 4-9 years of age drank milk 63% of the time. Consumers of this group tend to purchase dairy products in chained based grocery stores or in health specific stores or in department stores with food sections, such as Walmart. The main issue here is healthy products at a reasonable price. The best potential market for Purple cow dairy products is grocery stores.
They are chained based and found nationwide, they attract the most consumers who purchase groceries and they market and advertise their stores themselves which can attract consumers to those locations where the intended product is sold. Target market and strategies: The overall target market is all consumers who are health conscious and want products that offer them healthy benefits and a healthier diet and life. One such market is children, ages 2-12, the reason being that between the ages of 2-12, children more than double their weight and height.
This means that calcium intake is very important for young children at this age. Omega 3 based dairy products can increase a child’s learning ability and mental development and boost their immune system to prevent getting sick so often and allow children to do better in school. Another target market is teenagers. They are less health conscious and are concerned more about taste and convenience. But dairy products with omega 3 can be placed into chocolate milk or flavoured yogurt or in cheese used in pizza for etc, products which are often consumed by teens.
The four P****`s****: Promotion: Product: The product should have a large health label indicating the benefits of the product, including omega 3 data, indicating how much is in each individual product. It should have a big, bright label to attract the customer`s eye and on the front cover, a label indicating that the product contains omega 3. It should be made out of recyclable material to those who are environmental conscious as well which is a norm now a day. As seen here as an example: Figure 1: {draw:frame}